Regulation on allotment in Vietnam

Regulation on allotment in Vietnam (Internet image)

1. Regulation on allotment in Vietnam

According to Article 27 of Decree 47/2014/ND-CP, the minimum resettlement rate is as follows:

(1) An allotment as prescribed in Clause 4, Article 86 of the Land Law 2013 shall be defined in the form of inhabited land, houses or money to suit the choice of persons arranged for resettlement.

(2) In case an allotment is defined in the form of inhabited land, houses, area of resettlement land should not be less than minimum area approved of partition in the locality and area of resettlement house should not be less than minimum area of an apartment as defined by the Law on houses.

In case an allotment is defined in the form of houses, area of a resettlement house should not be less than minimum area of an apartment according to the provisions of the Law on houses.

In case an allotment is defined in the form of money, a sum of money for an allotment shall be equal to value of an allotment defined in the form of inhabited land, houses in the resettlement area.

(3) Based on the provisions set out in item (1), (2) and actual circumstances in the locality, the province-level People’s committee shall decide an allotment in the form of inhabited land, houses and money.

2. Payment for compensation, support and resettlement in Vietnam

Payment for compensation, support and resettlement in Vietnam according to Article 30 of Decree 47/2014/ND-CP (amended Decree 01/2017/ND-CP) is as follows:

- Deduction of an amount as financial obligation to land use unfulfilled by land users from the amount of compensation as defined in Clause 4, Article 93 of the Land Law 2013 shall be done as follows:

+ An amount as financial obligation to land use unfulfilled consists of land levies, land rent that are still unpaid to the State till the date of expropriation;

+ An amount as financial obligation to land use unfulfilled by users as defined in Point a shall be determined according to the provisions of the law on collection of land levies; land rent and water surface rent.

In case such unpaid amount as financial obligation to land use to the date of issuance of expropriation decision is more than the amount of compensation, households and individuals as land users shall be permitted debits for such difference; after resettlement house has been arranged to households and individuals and the difference after subtracting amount of compensation from amount for allocation of inhabited land and houses in the resettlement area is less than the unpaid amount as financial obligation to land use, households and individuals shall be permitted debits for such difference;

+ Amount of compensation subtracted from unpaid amount as financial obligation include amount of compensation for land and the remaining land-related investment expense (if any). Amounts of compensation for movement, losses caused to properties, suspension of business and production and others shall not be subtracted from unpaid amount as financial obligation to land use.

- In case compensation in the form of allocation of new land, inhabited land or houses in the resettlement area results in any difference in value, such difference shall be paid in money as follows:

+ In case amount of compensation for land is more than value of inhabited land, houses in the resettlement area, persons subject to resettlement shall receive such difference.

+ In case amount of compensation for land is less than value of inhabited land, houses in the resettlement area, persons subject to resettlement shall pay such difference except otherwise as regulated in Clause 1, Article 22 of Decree 47/2014/ND-CP.

- In case the area subject to expropriation is in dispute over land use right, compensation and support for such area shall be transferred to State Treasuries pending competent authorities’ decision and paid back to its real user after the case is concluded.

- Advances for compensation, support and resettlement shall be made as follows:

+ Land development fund shall make advances to organizations in charge of compensation and site clearance for the establishment of a clean land fund used for allocation and lease of land according to the model Statute on management and use of land development fund;

+ Any person who is allocated or leased land to with land levies and land rent respectively under the Land Law 2013 volunteers to make advances for compensation, support and resettlement according to the plan approved by competent agencies shall be paid back by subtraction from land levies and land rent. Amount to be subtracted should not exceed land levies, land rents; remaining amount (if any) shall be included in the investment capital of the project.

If any person who is allocated or leased land to with or without land levies or land rent according to the Land Law 2013 and exempted from land levies, land rent volunteers to make advances for compensation, support, and resettlement according to the plan approved by competent agencies, expenditures for compensation, support, and resettlement shall be included in the investment capital of the project.

+ The entities to which the government allocates lands with the charge of a land use fee or leases lands through an auction of land use rights, providing that they finance the compensation, support and resettlement in advance, can participate in organizing the procedure of compensation, support and resettlement upon the government’s expropriation of the lands.

Quoc Dat

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